2. Residential home prices will remain under pressure

Residential buildings as the sun sets in Rizhao city, Shandong province, Mar 25, 2015. [Photo/IC]

The rating agency expects residential home prices to remain under pressure over the next few months as developers continue to offer price incentives for projects, said Moody's in a note on Mar 24.

Housing prices remained downward in February, as 52 cities surveyed registered a more than 5 percent decline in home prices, compared to only 38 in January.

According to the report, Hangzhou's decline for the eleventh consecutive month of 0.4 percent was a result of developers' price discounting activities aimed at reducing inventory.